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Role of Government in Economy

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How China Controls the

Internet
How China Controls the
Internet
• Chinese government was considered the world’s
worst abuser of internet freedom for the fourth
consecutive year.

• Platforms focused on apolitical topics, including


entertainment, dating, and celebrity gossip
applications, faced new restrictions.

• Chinese citizens’ risk of being detained or


imprisoned for accessing or sharing information
online has increased considerably in recent years. 
What else does the government control in different countries?

News? Movies?

Women’s Rights?

International Trade?
The Role of the
Government in
our Economy
 Protecting Competition
 Protecting Business Agreements
 Protecting Creative Properties
Topics  Regulating the Production Process
 Government’s Role in Society
 How Government is Funded
 How Government Allocates Resources
Protecting
Competition
 Monopoly
When a company controls an industry or is
the only one to offer a product or service.
 Oligopoly
Small number of companies control an
industry
Protecting
Competition
 Monopoly
There is no competition
Any price can be charged for products and
services.
Quality may lower
Both limit choices
Protecting
Competition
 Trust
Group of companies that band together to
form a monopoly and cut out competition.
 Antitrust laws
Allow government to break up monopolies,
regulate them or take control of them.
Federal Trade Commission - FTC
Formed by the government to enforce
antitrust laws
Protecting Business
Agreements
Government enforces Contracts
Contract: legally enforceable agreement
between two or more parties.
Written, verbal or formed over a handshake.
Car Repair
Job Contract
Order

Lease
Car Rentals
Agreement
Protecting Business
Agreements
Breach of Contract: when a party fails to
live up to the terms of a contract.
Easier to prove with a written contract.
Protecting Creative
Properties

Law protect the right to own creative


properties.
Copyright gives artist the legal right to own
their creations.
Protects photographs, music, paintings,
books, plays.
Usually last 70 years after the owner’s death
Protecting Creative
Properties
Patent legal grant for the sole right to own an
invention.
No one can copy a patented product or process
without permission for 20 years after the inventor
filed his/her application with the US Patent and
Trademark Office.
Protecting Creative
Properties
Trademark is a name, a symbols, or a
characteristic that identifies a product.
Can only be used by the owner.
Regulating the Production Process

Pollution Minimum Wage Work Procedures Worker Safety


Waste Requirements
Government as Provider
HIGHLIGHTS

 Provide key services to the Public

 Government provide different services for the


good of the community
 Highways, bridges, water treatment plants and
national defense – example of public goods and
services.
 Social Welfare – Parks, museums, libraries.
Government as Provider

Revenue
Income government gets from all sources.
Taxes, fees consumers pay for certain public
goods and services

Privatization
Business that offers a public good or
service

Transfer Payment
Angel Guardian, 120 a los 65, Padrino Empresario,
Red de Oportunidades
Consuming Goods &
Services

 L argest consum er of goods


and ser vices,
 Buys co mputers, furniture
and s upplies for sc hools
and governm ent offi ces.
 Cars & Motorc yc les for the
poli ce a nd other enti ties.
Supporting Business

 Supports Busi ness es


 Subsides:
Mo n e t a r y g ra n t s g ive n to
p ro d u ce r s o r co n s u m e r s to
e n co u ra ge ce r t a i n b e h av i o r s
How Government
is Funded

Tax
 Amount of mo n e y
pe o pl e and b u sin e ss e s
pay gove rnm e nts to
he l p ru n the n at io n .
 In c l u d e d in pu rc hase
pr ice .
 Taxe s p ay fo r stre e t s,
park s, e d u catio n
How Government Allocates
Resources

 Prepare annual budget


 Allocates resources by deciding the best
ways to spend tax revenues.
 Determine which projects are priorities
Wrap Up & Questions

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